CBS Q4 Radio Revenues Down 8%
February 27, 2007 at 5:59 AM (PT)
CBS CORPORATION fourth-quarter revenues rose 2% to $3.9 billion, but radio revenues fell 8% to $488.2 million, which the company blamed on "the impact of programming changes at 27 owned radio stations during 2006, coupled with challenges in the radio advertising marketplace." Same station revenues, excluding stations being LMA'd in anticipation of being sold, fell 6%. Radio revenues were off 7% for the year to $2 billion. Overall adjusted net earnings from continuing operations for the entire company jumped 44% to $464 million (60 cents/diluted share).
"CBS's fourth-quarter results capped off a strong first year as a stand-alone company," said Pres./CEO LES MOONVES. "Strong fourth-quarter operating results at Television, Outdoor and Publishing helped us surpass our key financial targets for the year. Looking forward, we will continue to focus on running our core operations effectively; reshaping our portfolio into better-margin, higher-growth businesses; using the interactive opportunity to deepen and broaden our relationship with audiences; and receiving compensation for our content through retransmission consent agreements and new interactive platforms. I am confident that the company is well positioned to deliver long-term growth, strong cash flow, and increased value for our shareholders."
The company also announced that its quarterly dividend will increase 10% to 22 cents/share, payable APRIL 1 to shareholders of record as of MARCH 7. The board also approved a $1.5 billion share repurchase program starting this quarter. "The dividend increase and share buyback program are a direct reflection of the confidence we have in our ongoing ability to generate strong, healthy free cash flow," said MOONVES. "We have a long-standing commitment to return value to our shareholders and these initiatives are proof positive that we will continue to honor it."